Emkay sets Nifty target at 29,000 by Dec 2026 on demand revival, RBI's liquidity infusion, likely India-US trade deal

Emkay Global Financial Services has projected the Nifty to touch 29,000 by December 2026, citing a likely pick-up in discretionary consumption, liquidity support from the Reserve Bank of India and expectations of an India-US trade agreement.

In its India Strategy 2026 outlook, the brokerage said it sees valuations staying elevated through the period. It added that GST reforms and an improvement in affordability are expected to aid consumption and support overall economic momentum. The RBI’s “do what it takes” approach, Emkay said, is likely to revive retail lending even as near-term market volatility may persist.

According to the firm, a combination of GST-driven consumption trends, a softer interest rate environment and policy stability provides a constructive backdrop for medium-term growth. It also expects a normal monsoon to help incomes and spur a consumption recovery, with an additional boost anticipated from tax cuts in the FY26 Union Budget.

Emkay has maintained an Overweight stance on Discretionary, Industrials, Healthcare and Materials for 2026, pointing to improving demand indicators and steady earnings visibility. It said discretionary consumption remains its strongest theme, supported by GST-led price cuts, firmer urban demand and early signs of improvement in hiring.